OFFERING MEMORANDUM Long-Term Net Lease Sale | Xsport Fitness (Suburban Chicago) TABLE of CONTENTS 2
Total Page:16
File Type:pdf, Size:1020Kb
OFFERING MEMORANDUM Long-Term Net Lease Sale | XSport Fitness (Suburban Chicago) TABLE OF CONTENTS 2 Transaction Summary..........................5 Tenant Summary.................................6 Chicago Market Overview..................7 Downers Grove Demographics.....................................9 Market Overview..............................10 Aerial View.........................................11 Exterior Photos...................................12 Naperville Demographics....................................15 Market Overview...............................16 Aerial View.........................................17 Exterior Photos...................................18 St. Charles Demographics...................................21 Market Overview..............................22 Aerial View........................................23 Exterior Photos..................................24 Interior Photos...................................26 Matteson Demographics...................................29 Market Overview..............................30 Aerial View.........................................31 Exterior Photos...................................32 Crestwood Demographics...................................35 Market Overview..............................36 Aerial View........................................37 Exterior Photos...................................38 DISCLAIMER 3 This Offering Memorandum (“Memorandum”) is intended solely for the use of prospective investors in determining whether or not to pursue the possible acquisition of the XSport Fitness properties in the Chicagoland area. This Memorandum is of a proprietary and confidential nature. Prospective investors and/or their advisors are expressly forbidden from sharing this information with any individuals or organizations that are not directly connected with the analysis of this investment opportunity. STREAM Capital Partners, LLC (“SCP”) has been retained as the exclusive advisors for this investment opportunity. Any and all inquiries are to be directed to SCP. By accepting this Memorandum, the recipient agrees that it will cause its directors, officers, employees and representatives to use the Memorandum and all of the information contained therein only to evaluate this specific investment opportunity and for no other purpose and shall return this Memorandum together with any copies to SCP upon request. This Memorandum contains confidential material which is non-public information. Receipt of this Memorandum constitutes your acknowledgment that you will maintain the information contained herein in strict confidence. All information contained herein has been provided by XSport Properties (the “Organization”), its affiliates or other sources that SCP deems reliable; however, SCP has not independently verified any of the information, including the financial estimates and projections and selected real estate information, contained herein. This Memorandum includes information about the Organization, including selected financial information, estimates and projections that reflect various assumptions concerning anticipated results, which may or may not prove to be correct and selected real estate information which may or may not prove to be correct. Such projections and estimates may or may not be indicative of future performance, which may be significantly more or less favorable than that as reflected herein. In furnishing this Memorandum, none of the Organization, its affiliates or SCP undertakes any obligation to provide additional information or to correct or update any of the information set forth in the Memorandum. None of the Organization, its affiliates or SCP makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein in this Memorandum, or made available in connection with any further investigation of the Organization, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The recipient should rely solely on the representations and warranties made to it by the Organization or its affiliates in any executed definitive agreement. Under no circumstances should the Organization, its affiliates or any of their management, directors, shareholders, employees, customers or vendors be contacted directly. Exclusive Representation Jonathan Wolfe Jordan Shtulman Jeff Lizzo Managing Principal Managing Principal Vice President 312 310 279 8 847 226 4133 630 222 8409 [email protected] [email protected] [email protected] Lic: 475.017515 Lic: 475.152062 Lic: 475.149270 THE OFFERING TRANSACTION SUMMARY 5 Property Address: 3200 Finley Road Cap Rate: 6.50% Downers Grove, IL 60515 Purchase Price: $62,125,338 Building (SF): 43,501 Annual Rent: $4,038,147 Land Acres (est.): 5.64 Annual Rent / ($ / SF): $1,087,525 / $25.00 per SF Lease Type: NNN Property Address: 2780 Fitness Drive Landlord Responsibilities: None Naperville, IL 60540 Year 1 Annual Rent: $4,038,147 Building (SF): 43,501 Tenant: XSport Fitness Land Acres (est.): 5.21 Lease Term: 15 Years Annual Rent / ($ / SF): $1,087,525 / $25.00 per SF Rent Commencement: Upon Closing Property Address: 238 N. Randall Road Renewal Options: Four (4), Five (5) Year Saint Charles, IL 60174 Options Building (SF): 43,501 Rent Escalations: 10% every five (5) years Land Acres (est.): 3.94 Guarantee: 15 Years Annual Rent / ($ / SF): $1,087,525 / $25.00 per SF Property Address: 4701 Lincoln Mall Drive Matteson, IL 60443 Building (SF): 23,803 Land Acres (est.): 2.27 Annual Rent / ($ / SF): $357,045/ $15.00 per SF Property Address: 13343 S. Cicero Avenue Crestwood, IL 60445 Building (SF): 15,501 Land Acres (est.): 2.40 Annual Rent / ($ / SF): $418,527 / $27.00 per SF TENANT SUMMARY 6 Founded in 1997, XSport Fitness is one of America’s fastest growing fitness chains. In addition to state-of-the-art equipment and facilities, first class service, top-of-the-line personal trainers, dietary supplements, the latest in fitness apparel, and educational programs,XSport’s gyms are also equipped with a child’s play area and, for convenience, are open 24 hours a day, seven days a week. XSport Fitness strives to provide its members with a pleasant, upbeat, and comfortable environment to exercise and train in. Members also enjoy a full service spa and salon where they can relax while savoring a massage or facial, get a haircut, hit a tanning bed, or indulge in one of many other luxurious services. XSport’s mission is to promote an atmosphere that allows members to create and maintain a rewarding and healthy lifestyle. The dedication and passion lived out by employees continue to establish and maintain XSport’s reputation as a first-class member service- oriented organization dedicated to a healthy environment for its members. XSport Fitness accomplishes this by adhering to the following core values and goals: • To provide the best fitness facility to members • To maintain the best value • To create the best atmosphere in which to train • To provide the best service to members As the number of gyms in the fitness industry continues to grow, membership is also climbing steadily. The total number of gym members in the U.S. alone stands at just over 50 million. That is a 22% jump compared to 2005, when around 41 million people had active memberships. MARKET OVERVIEW | CHICAGO 7 With over 2.7 million residents, Chicago is the most populous city in both the state of Illinois and the Midwestern United States. The Chicago metropolitan area, often referred to as “Chicagoland,” has nearly 10 million people and is the third-largest in the United States. Positioned along Lake Michigan, Chicago is St. Charles considered one of the most important business centers Location in the world. The city is an international hub for finance, commerce, industry, technology, telecommunications, and transportation. Downers Grove Location The city has one of the world’s largest and most diversified economies, with no single industry employing more Naperville than 14% of the workforce. Chicago welcomes 175,000 Location suburban people daily for work and features a strong Crestwood labor market with an unemployment rate of 4.5%. Location The Chicagoland region also has the largest number of U.S. highways and railroad freight where nearly 50 percent of U.S. rail freight passes through Chicago. Matteson Nearby is Midway International Airport and O’Hare Location International Airport, which is the second-busiest airport in the world when measured by aircraft traffic. In 2016, Chicago hosted record 54 million domestic and international visitors, making it one of the most visited cities in the United States. Today, Chicago has become a global city, a thriving center of international trade and commerce, and a place where people from diverse backgrounds come to pursue the American dream. Chicago and its surrounding area hosts more than 65 colleges, community colleges, and universities. Additionally, attracting 1.7 million spectators each year, the Chicago Marathon is the fourth-largest race by number of finishers worldwide. In 2015, the marathon contributed an estimated $277 million worth of activity to the Chicago economy, equivalent to 1,948 jobs. DOWNERS GROVE 3200 Finley Rd. DOWNERS GROVE 9 DEMOGRAPHICS POPULATION ESTIMATE 1-MILE 3-MILE 5-MILE 4,836 79,504 2 7 2 ,112 ESTIMATED AVERAGE HOUSEHOLD INCOME 1-MILE 3-MILE 5-MILE $134,354 $123,006 $ 127,192 MARKET OVERVIEW | DOWNERS GROVE 10 Downers Grove is located in the heart of DuPage County, just